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Technology Stocks : XM Satellite Radio Holdings Inc. (XMSR) -- Ignore unavailable to you. Want to Upgrade?

To: Ditchdigger who wrote (212)	1/3/2002 6:32:12 AM
From: i-node	Respond to of 3386

"The stock is cheap to own" A ludicrous statement No, it isn't. From my perspective, the cost of acquiring large quantities of upside potential is minimal. Please share your metrics it is a gamble, pure and simple Of course it is a gamble! This is a speculation -- extremely risky. The metric is "how does the cost to own the stock compare with the potential for upside gain"? You have a business that will generate net profit of 50% of gross revenue once the fixed costs are covered. These are a rarity; perhaps you'd care to list a few of the others with this characteristic. Once breakeven is hit, it is nothing short of a cash cow. Certainly, you can't be disagreeing about this statement, as some basic knowledge of the business ought to tell you that. So the big problem is getting the 3-4 million subscribers that will be required to break even. I think this is relatively easy to do, particularly once the automakers start installing these things as factory options (I'd be quick to point out, however, that aftermarket sales are brisk -- many popular sources, such as Crutchfields, have had trouble keeping them in stock). I do think the first 45 days will reflect somthing on the order of 50,000 subscriptions, although this is not important other than as a commentary on the level of interest. People differ wildly on this stock. And I think it is because lots of people simply can't comprehend the interest the public has in the product. People WILL buy this product, and ultimately, if you want to discuss this, the best thing to do is revisit it a year from now.

To: Ditchdigger who wrote (212)	1/3/2002 3:23:51 PM
From: H James Morris	Read Replies (1) \| Respond to of 3386

>>XM Satellite Radio (XMSR: news, chart, profile) lost more than 7 percent in midday action. The shares appear to be reacting to a lukewarm review of the current state of the company's satellite radio service in Thursday's Wall Street Journal. The article says that the service is "an artistic success," but then goes on to list a number of drawbacks, including significant cost, and poorly designed radio receivers. XM's service, which offers 100 channels for $10 per month, could also face competition from home-burned CDs that allow people to program their own play lists, according to the WSJ. Other sour points mentioned include spotty reception in some areas, and the presence of advertising on most channels despite the monthly fee. Shares of Sirius Satellite (SIRI: news, chart, profile), which is scheduled to unveil a competing service in February, gave back more than 9 percent.<<